As a result of legislative changes and near-saturation levels in key markets, the demand for solar-power installations is decreasing, and in 2026, this will drop for the first time since the industry became a worldwide force 20 years ago.
Based on data from the Bloomberg New Energy Finance (BNEF) 649 GW of solar will be installed in 2026, which is 6 GW less than the 655 GW predicted for 2025.
A number of policy changes in the U.S. and China – the largest market players – have slowed growth in demand, and even though several other markets are expected to grow rapidly, they will not be able to make up for the large deficit caused by these two countries.
However, according to S&P Global Energy, experts anticipate cumulative worldwide solar photovoltaic (PV) capacity will grow by 2.8 TW between 2026 and 2030
(see the illustration below).
In terms of which countries are leading in the solar energy industry, apart from the top two – China and the United States – important roles are played by India, Japan, Germany, and a number of other nations, according to the Energy Institute’s Statistical Review of World Energy 2025 report.
As countries continuously invest in clean energy and increasing capacities, the global solar energy scene is changing quickly, despite the trend of growth slowing down.
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Top 10 Countries by Operating Solar Capacity
The table below ranks countries by how much solar power capacity they currently have up and running.
The information for the graph was provided by the Global Energy Monitor’s Solar Power Tracker.
The global total solar operating capacity is about 2,093,015 MWac.
Why MWac? This abbreviation stands for megawatts in alternating current.
- MW = megawatt is a unit that measures how much electricity a power plant can produce.
- ac = alternating current is the type of electricity that goes into power grids and homes.
- MWac is the actual usable electricity capacity of a solar power plant after the electricity has been converted into grid-friendly power.
The first three spots in the ranking are held by China, the U.S. and India.
- China is by far the number one nation with 1,062,632 MWac (about 50.8% of the world’s total).
- The United States is second with 210,871 MWac (about 10.1%).
- India is third with 124,466 MWac (about 5.9%).
Country Operating capacity (power) % of global total 1 China 1062632 50.80% 2 United States 210,871 10.10% 3 India 124,466 5.90% 4 Germany 102,695 4.90% 5 Brazil 63,282 3.00% 6 Japan 59,125 2.80% 7 Spain 42,274 2.00% 8 Australia 38,103 1.80% 9 Italy 34,988 1.70% 10 France 29,350 1.40%
1. China
- Operating capacity (power): 1062632
- % of global total: 50.80%
2. United States
- Operating capacity (power): 210,871
- % of global total: 10.10%
3. India
- Operating capacity (power): 124,466
- % of global total: 5.90%
4. Germany
- Operating capacity (power): 102,695
- % of global total: 4.90%
5. Brazil
- Operating capacity (power): 63,282
- % of global total: 3.00%
6. Japan
- Operating capacity (power): 59,125
- % of global total: 2.80%
7. Spain
- Operating capacity (power): 42,274
- % of global total: 2.00%
8. Australia
- Operating capacity (power): 38,103
- % of global total: 1.80%
9. Italy
- Operating capacity (power): 34,988
- % of global total: 1.70%
10. France
- Operating capacity (power): 29,350
- % of global total: 1.40%
Please note:
- It is important to distinguish between capacity (GW), which shows system size, and production (GWh), which measures how much power was actually produced over time.
- Solar capacity is reported in two ways: DC (panel capacity) and AC (usable grid capacity).
- Since power must be converted from DC to AC, DC figures are typically higher, which explains why 262 GW (DC) aligns with roughly 211 GW (AC) in the Top 10 table.
Electricity production is already starting to change as a result of the growth of clean energy in developing nations like China and India.
Let’s examine the top three countries leading in solar power, China, the United States of America, and India.
China
Apart from its installed solar power capacity, China also manufactures more than 80% of the materials and components used in solar panels worldwide.
According to one analysis, historic increases in renewable capacity were sufficient to match the growth in demand in 2025, resulting in the first parallel fall in the amount of coal-generated electricity in China and India in 50 years.
According to China’s National Bureau of Statistics annual report, the country generated 1.17 million gigawatt-hours of energy from solar power in 2025, a 40% increase over the previous year.
That surpassed wind generation, which registered an increase of 13%, hitting 1.13 million gigawatt-hours but still remaining below solar power generation.
Coal continues to be China's primary energy source, with an estimated 5.7 million gigawatt-hours generated by coal-fueled power plants. This is mainly because solar and wind power production is weather-dependent, whereas coal-based power plants can provide an uninterrupted supply of electricity.
The United States of America
The United States and India, the second and third largest solar energy producers globally, are seeing rapid growth in the number of large-scale projects, fueled by policy support such as the United States' Inflation Reduction Act and India's National Solar Mission.
However, their combined projected capacity will remain less than half of that of China.
The U.S. currently boasts 262 GW direct-current of solar capacity mounted around the country, which allows it to power around 45 million houses out of more than 145 million.
According to the Solar Energy Industry Association, the United States has witnessed dramatic growth in solar energy since 2010 and the impressive 20% growth of solar deployment over the last 10 years has been the result of several factors:
● A number of strong policies such as the Solar Investment Tax Credits.
● Rising demand for clean power from the private and public sectors.
India
The country’s solar capacity has dramatically increased over the last few years due to considerable growth in solar installations.
As of October 2025, non-fossil energy capacity had surpassed 259 GW, making up more than 50% of the country's total installed power capacity, according to Indian government officials. This represents an important move toward low-carbon energy, with solar capacity now standing at about 124-129 GW.
According to India’s Ministry of New and Renewable Energy, the government has undertaken a number of actions to encourage the use of solar energy, including:
● Permitting Foreign Direct Investment (FDI) up to 100% under the automatic route. This means that foreign investors can own 100% of a business in this sector without requesting permission from the government before making the investment.
● The Project Development Cell has been establishment to attract and facilitate investments.
● Standard bidding guidelines for tariff-based competitive bidding processes for power purchase from grid connected solar photovoltaic and wind projects have been implemented.
Final word
China remains the largest player in the global solar market, with the highest installed capacity and manufacturing output. It is followed by the United States and India, who are expanding their solar infrastructure at a rapid pace and playing an important role in global capacity expansion. These three countries account for a large portion of global solar installations.
While countries such as Germany, Brazil, and Japan continue to invest in solar power, their growth rates and total capacity remain lower than those of the top three. Overall, installation growth in some regions has slowed due to regulatory changes, grid restrictions, and market saturation in developed markets.
However, despite the short-term changes in growth rates, solar power remains one of the world's fastest-growing energy sources and is predicted to play an important role in the global energy transition.
